Bill Summary – FastDemocracy

Stricken language would be deleted from and underlined language would be added to present law.
 State of Arkansas                    As Engrossed:       H2/8/21
 93rd General Assembly                        A Bill
 Regular Session, 2021                                                             HOUSE BILL 1404
 4
 By: Representative Bentley
 By: Senator G. Stubblefield
 7
                                   For An Act To Be Entitled
                 AN ACT TO AMEND THE EXEMPTIONS OF CERTAIN ENTITIES
                 FROM INSURANCE REGULATION; AND FOR OTHER PURPOSES.
11
12
                                               Subtitle
                         TO AMEND THE EXEMPTIONS OF CERTAIN
                         ENTITIES FROM INSURANCE REGULATION.
16
17
 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
19
         SECTION 1.       Arkansas Code  23-60-104 is amended to read as follows:
         23-60-104.       Exceptions  Burial associations  Health care Healthcare
 sharing ministries  Direct primary care agreements  Noninsurance healthcare
 benefits coverage  Definitions.
         (a)   The Arkansas Insurance Code and rules promulgated by the Insurance
 Commissioner under the Arkansas Insurance Code do not apply to a:
                 (1)     Burial association governed by  23-78-101  23-78-119 and
 23-78-121  23-78-125;
                 (2)     Direct primary care agreement; or
                 (3)     Health care Healthcare sharing ministry; or
                 (4)     Noninsurance healthcare benefits coverage provided by a not-
 for-profit membership organization.
         (b)   As used in this section:
                 (1)(A)     Direct primary care agreement means a written agreement
 that:
                                (i)    Is between a licensed healthcare provider and a
 patient or the patient's legal representative;
     *ANS180*                                                                    02-08-2021 09:58:34 ANS180
     As Engrossed:      H2/8/21                                                         HB1404
                               (ii)(a)       Allows either party to terminate the
 agreement in writing, without penalty or payment of a termination fee, at any
 time or after notice as specified in the agreement.
                                       (b)    The notice of termination described in
 subdivision (b)(1)(A)(ii)(a)           of this section shall not exceed sixty (60)
 days;
                               (iii)     Describes the healthcare services to be
 provided in exchange for payment of a periodic fee;
                               (iv)    Specifies the periodic fee required and any
 additional fees that may be charged;
                               (v)     May allow the periodic fee and any additional
 fees to be paid by a third party;
                               (vi)    Prohibits the healthcare provider from charging
 or receiving additional compensation for healthcare services included in the
 periodic fee; and
                               (vii)     Conspicuously and prominently states that the
 agreement is not health insurance and does not meet any individual health
 insurance mandate that may be required by federal law.
                      (B)     A direct primary care agreement shall provide a
 written disclaimer on or accompanying an application distributed by or on
 behalf of an entity offering a direct primary care agreement that reads, in
 substance:
 Notice: A direct primary care agreement is not an insurance policy, and the
 select medical services as specified under a direct primary care agreement
 may not constitute the minimum essential health benefits under federal
 healthcare laws established by Pub. L. No. 111-148, as amended by Pub. L. No.
 111-152, and any amendments to, or regulations or guidance issued under,
 those statutes existing on January 1, 2017. Medical services provided under a
 direct primary care agreement may not be covered by or coordinated with your
 health insurance and you may be responsible for any payment for medical
 services not covered by health insurance under your insurer's statement of
 benefits policy..
                      (C)     Direct primary care agreement does not mean a health
 benefit plan or a health maintenance organization as defined in  23-76-102;
 and
              (2)    Health care Healthcare sharing ministry means a faith-
                                                   2               02-08-2021 09:58:34 ANS180
     As Engrossed:   H2/8/21                                                        HB1404
 based, nonprofit organization that:
                   (A)     Is tax-exempt under the Internal Revenue Code of 1986;
                   (B)     Limits participation to those who are of a similar
 faith;
                   (C)     Facilitates an arrangement to match participants who
 have financial or medical needs to participants with the present ability to
 assist those with financial or medical needs according to criteria
 established by the health care healthcare sharing ministry;
                   (D)     Provides for the financial or medical needs of a
 participant through contributions from one (1) participant to another;
                   (E)     Establishes contribution amounts for participants with
 no guarantee of return, assumption of risk, or promise to pay qualified
 medical needs of the participant or of the medical provider performing the
 service or services for the participant;
                   (F)     Provides a written monthly statement to its
 participants that lists:
                            (i)    The total dollar amount of qualified needs
 submitted to the health care healthcare sharing ministry; and
                            (ii)   The amount of contribution established for its
 participants;
                   (G)     Provides a written disclaimer on or accompanying an
 application and guideline material distributed by or on behalf of the health
 care healthcare sharing ministry that reads, in substance:
 Notice: The organization facilitating the sharing of medical expenses is not
 an insurance company and neither its guidelines nor plan of operation is an
 insurance policy. If anyone chooses to assist you with your medical bills, it
 will be totally voluntary because participants are not compelled by law to
 contribute toward your medical bills. Participation in the organization or a
 subscription to any of its documents should never be considered to be
 insurance. Regardless of whether you receive a payment for medical expenses
 or if this organization continues to operate, you are always personally
 responsible for the payment of your own medical bills.; and
                   (H)     Transfers or distributes contribution amounts from one
 (1) participant to match the qualified medical needs of another participant
 to whom neither the organization nor the sending participant has an
 obligation or commitment to pay for any qualified medical needs with its own
                                             3               02-08-2021 09:58:34 ANS180
     As Engrossed:       H2/8/21                                                     HB1404
 funds; and
               (3)(A)     "Not-for-profit membership organization" means a
 professional association, trade association, or any entity that has dues-
 paying members that:
                                (i)    Is a qualifying charitable nonprofit
 organization that has received tax-exempt status under 26 U.S.C.  501(c)(3),
 as in effect on January 1, 2021; and
                                (ii)   Exists to serve its members beyond the offer of
 noninsurance healthcare benefits coverage.
                        (B)    Notwithstanding any law to the contrary, noninsurance
 healthcare benefits coverage provided by a not-for-profit membership
 organization is not insurance.
                        (C)    The risk under noninsurance healthcare benefits
 coverage may be reinsured by an entity authorized to conduct reinsurance
 business in this state under  23-62-205.
                        (D)    A not-for-profit membership organization that provides
 noninsurance healthcare benefits coverage shall file a signed, certified
 actuarial statement confirming plan reserves annually with the Insurance
 Commissioner.
20
      SECTION 2.        Arkansas Code  23-76-103(c), concerning applicability of
 laws concerning hospital and medical service corporations, is amended to read
 as follows:
      (c)     This chapter does not apply to a:
               (1)    Health care A healthcare sharing ministry as defined in 
 23-60-104(b); or
               (2)    Direct A direct primary care agreement as defined in  23-
 60-104(b); or
               (3)    Noninsurance healthcare benefits coverage provided by a not-
 for-profit membership organization as described in  23-60-104.
31
      SECTION 3.        EFFECTIVE DATE.      This act is effective on and after January
 1, 2022.
34
                                           /s/Bentley
36
                                                 4               02-08-2021 09:58:34 ANS180
Statutes affected: 
Old version HB1404 Original - 2-3-2021 01:00 PM: 23-60-104, 23-78-101, 23-78-119, 23-78-121, 23-78-125, 23-76-102, 23-62-205, 23-76-103(c)
Old version HB1404 V2 - 2-8-2021 09:59 AM: 23-60-104, 23-78-101, 23-78-119, 23-78-121, 23-78-125, 02-08-2021, 23-76-102, 23-62-205, 23-76-103(c)
HB 1404: 23-60-104, 23-78-101, 23-78-119, 23-78-121, 23-78-125, 02-08-2021, 23-76-102, 23-62-205, 23-76-103(c)
Old version of HB 1404 - 02-08-21: 23-60-104, 23-78-101, 23-78-119, 23-78-121, 23-78-125, 02-08-2021, 23-76-102, 23-62-205, 23-76-103(c)
Old version of HB 1404 - 02-03-21: 23-60-104, 23-78-101, 23-78-119, 23-78-121, 23-78-125, 23-76-102, 23-62-205, 23-76-103(c)